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How To Transfer Real Estate [4 Requirements]

Transcript:

Hey everyone welcome to V-FAQ’s I’m attorney Joe Collier and today we’re going to talk about how to transfer real estate. Now, to transfer real estate there are four things that you want to either do or have. And I’m going to briefly go over those four things, and then talk about which ones you need when you’re transferring real estate to a relative, a friend and a stranger. So the first thing that you need is a deed. That’s going to be either a quitclaim deed or a general warranty deed I go over the different types of deeds in another video. But that is what actually transfers the property that is the title to the property. It must be notarized witnessed and then recorded the county recorders office. The next thing that you will need is the seller’s disclosure forms, those forms, just disclose any known defects or risks or hazards in the house that the seller knows of. The third thing is a purchase contract. And that one’s pretty obvious just determines the term the price the closing date, all that good stuff. And then lastly a title search that relates to the deed in the chain of title who owned it previously, and that will show you what title you have to the property, if there are any easements or any other. I guess rights to the property. So when you’re selling or transferring to a relative. All you need is the deed. The law, excludes relatives from the requirement to do seller’s disclosures, so if they’re a relative you’re not required to do those disclosures. And if you’re doing a transfer by deed, mostly by quitclaim, then you don’t need a purchase contract, you will need a purchase contract, if you’re working with a lender because they always require one. But if it’s just a transfer, it’s just the deed. Now if you’re transferring to a friend. You need the deed. And you have to have those sellers disclosures, since they’re not a relative the law doesn’t say your friends don’t have to do so, therefore, you need the deed and you needed to seller’s disclosures. Now if you’re buying or selling from someone that you don’t trust or that’s not a friend or a relative. You will need the deed, the sellers disclosures, and you pretty much need the purchase contract it’s not legally required to transfer the property. But if you don’t know them or trust them. Then you need, or just contract. And at that point, you also want the title search. Typically, you’re not going to transfer by quitclaim deed. If it’s a stranger. And so you want to do a title search to see what encumbrances are on the property. And what kind of title you’re actually acquiring it and you will also want to make sure that that person owns the property that they’re claiming to sell. And that’s what the title search does. So, if you want more information on the deeds go check out my other videos, and that’s all for today, I’ll see you next time.

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V-FAQ’s: How to start a 501(c)3 charity [4 Steps]

Transcript:

Hey, everyone, welcome to V-FAQ’s. I’m attorney Joe Collier and today we’re going to talk about how to start a tax exempt company. A lot of you know this as a 501(c)3 and to get started, you have to have one of three eligible entities, that’s a trust and unregistered association or corporation. We’re going to start with a corporation because a trust is very inefficient, it’s a hassle to use, you have to title assets in a certain way, and no one wants to deal with that. Non-registered association have to follow the same steps as a corporation, but you don’t get the benefit of registration. So we’re not going to talk about that.

Now, in a previous video, I discussed how to start a corporation. So watch that video, write down those steps. And we’re going to make two changes to that. The first change is in your Articles of Incorporation, there’s a purpose clause, there’s also going to be a purpose clause on your bylaws. The purpose clause, normally, I would advise you to write down any lawful purpose that allows you to do any business conduct without being pinned down to one industry or activity.

Now, for a tax exempt company, you have to pin yourself down you have to write exclusively for the purpose of whatever activity you’re pursuing under 501(c)3. There are three activities that will grant you tax exemption: charity, religion, and education. So if you’re going to start a charity, you write exclusively for charitable conduct permitted by 501(c)3, that’s your purpose clause in your articles and your bylaws. Now, the second change is that shareholders are going to be called members. That’s because there’s a rule saying there can be no private interest holders in your corporation. A tax exempt company cannot be for the private financial interest of individuals. So that means that there’s no shareholders and that people working for the corporation have to be paid reasonably. If you’re going to be the founder and elect yourself to be on the board of directors, you can pay yourself, but it has to be within reason.

Now, those are the two changes that you make to receive your tax exemption status you have to apply on the IRS website. For the tax exemption, you also have to apply on your state’s tax department’s website, or submit their paper filing, if that’s what they require. That way you receive both your federal and your state tax exemption. Now, you have to do this at least at the IRS level, within 27 months of starting your company. Otherwise, you have to start a new company because it’s only eligible for the first 27 months. To do that filing, you’re going to need your basic business startup documents, bylaws articles of incorporation the certificate of registration you receive. When the state approves your filing, and financial statements for the past however long you’ve been open. Even if these financial statements are blank, you still have to submit them it’s part of the application package. Also, for at least the IRS, there’s going to be a filing fee of usually $275.

So you submit all that information with your filing fee. It comes back you’re approved for tax exemption, you just have to maintain your purpose and your financial interest where owners or directors are not being paid ridiculous amounts of money. And again, there’s no owners because there’s no shareholders. There are only people that run the company and that’s going to be the board of directors. So that’s it, you’ve got your tax exempt status. Thank you for watching, and I’ll see you next time.

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V-FAQ’s: How To Start A Corporation [4 Requirements]

V-FAQ's

“Video” answers to “Frequently Asked Questions”

Transcript:

Hey everyone, welcome to V-FAQ’s I’m attorney Joe Collier and today we’re going to talk about how to start a corporation. Now we’re going to break that down into four requirements, the first being the articles of incorporation. That’s the filing that you make on the Secretary of State’s website. That’s the business registration.

The second step is corporate bylaws, that’s going to be a large document that governs the entire structure of the business how everyone is elected board of directors officers, how everyone is terminated. It’s the most important document that you’re going to have in your corporation. I suggest you have a lawyer at least review your template, if not draft it for you.

Now the third requirement is an initial shareholder meeting. The meeting is for signing the bylaws and electing the board of directors. You have to have documentation of the meeting, even if it’s just you you can start a corporation with just one person, but they have to satisfy all of these requirements, including the meetings, so you want to document your meetings. You want to have an itinerary of what happens, you want to have anyone who attends sign in. And then at this initial meeting for shareholders, you have to, again, sign the bylaws, and elect the board of directors, even if it’s you electing yourself.

Now the fourth requirement is an initial board of directors meeting. That’s where the board of directors is going to elect the officers. So those are the Ohio requirements, a corporation has to have a board of directors and they have to have three officers. the Secretary, the treasurer and presidents. Now, one person can satisfy more than one position. So if one person started the corporation, they will elect themselves to the Board of Directors, they would elect themselves to be the president, treasurer, and secretary. After you’ve met all of these requirements, you’re going to have to hold annual shareholder meetings and annual Board of Directors meetings. Again, if it’s just one person maybe two you just have this standard document that records your activities during these meetings and you sign it. And that’s all the requirements. Thank you for watching and I’ll see you next time.

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V-FAQ’s: How To Start A Business [4 Steps]

V-FAQ'S

“Video” answers to “Frequently Asked Questions”

Transcript:

Hey, everyone, welcome to V-FAQ’s. I’m attorney Joe Collier and today we’re going to talk about what you need to start a business. Now what you need to start a business is yes, registering your business name. But a lot of people stop there, that’s not enough that you will not get any legal protection from this business entity that you haven’t created yet, because you’ve only registered a name. What you need is to create that entity, it’s got to be different than yourself, which means it needs to have its own tax ID number that’s called an EIN, you go to the IRS website to get that. Then you take that tax ID number and you get it bank accounts, you cannot be commingling your money and the business money in the same accounts.

Now, the next thing you want to do is you want to get a document that creates rules for your company, that nine times out of 10 you’re starting an LLC. So that document is called an operating agreement. Why do you need that? Why do you need rules, even if it’s just one person that owns the company, even if it’s just you on your own? You need that because when someone sue’s your company, they are going to try to sue you as well. So all of these things create a separate entity, it makes it look like it’s not just you acting under a name, it’s a separate entity, it creates the separation is called a corporate veil. And part of that corporate veil is documentation that creates rules for the company. When someone tries to pierce that corporate veil, and get your personal assets, your home your income from actual wages, that corporate veil is pierced by five factors. One of the factors is the existence of a document that creates rules that govern the business. And another factor is whether or not your business follows those rules. So two out of five of the factors are completely dependent on the existence of an operating agreement. If you don’t have that, you’re probably going to be personally liable. And there was really no point starting the business at all. So make sure you get that operating agreement. Get your name registered Secretary of State country I am with the IRS, create your bank accounts, get your rules and follow the rules of the operating agreement that you set. That’s all for this video. Thank you for watching, and I’ll see you next time.